The Fidelity Nordic Fund is in Overbought Territory

Fidelity Nordic Fund (FNORX, last change: 2.38%)

We highlighted the Fidelity Nordic Fund (FNORX, last change: 2.38%) as the strongest-performing Fidelity international fund in previous blog posts. FNORX has returned 14.34% in the last three-months, but now it is in an overbought condition. We wouldn’t be surprised to see a correction in the next few days in the Northern European markets. Consequently, this may be a good opportunity to take gains.

 

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

 

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Dow and S&P500 Indexes at All-Time Highs Again; The Fidelity Small Cap Enhanced Index Fund (FCPEX) is a Top Performer

Fidelity Small Cap Enhanced Index Fund (FCPEX, last change: 0.34%)

The Fidelity Small Cap Enhanced Index Fund (FCPEX, last change: 0.34%) is the best performing diversified Fidelity fund with 14.37% three-month return. The steeply rising price on the FCPEX chart may signal that the market is reaching an overextended phase and a correction is becoming increasingly likely.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

Japanese Stocks Seem Invincible, but Overbought Correction is Likely

Fidelity Japan Smaller Companies Fund (FJSCX, last change: 1.47%)

The Fidelity Japan Smaller Companies Fund (FJSCX, last change: 1.47%) has gained today in spite of the global sell-off in equities. FJSCX is by far the best performing Fidelity mutual fund with 37.38% year-to-date gain. Investors, who have participated in the rapid rise of Japanese equities, may be better off to take profits at this point to avoid the inevitable correction.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

Dow at Record High; Utilities, Biotechs and Japan are Overbought Now and Ripe for a Correction

Fidelity Select Utilities Portfolio Fund (FSUTX, last change: 0.70%)

Fidelity Select Utilities Portfolio Fund (FSUTX, last change: 0.70%)

Fidelity Select Biotechnology Fund (FBIOX, last change: 1.63%)

Fidelity Select Biotechnology Fund (FBIOX, last change: 1.63%)

Fidelity Japan Smaller Companies Fund (FJSCX, last change: 0.10%)

Fidelity Japan Smaller Companies Fund (FJSCX, last change: 0.10%)

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

The Stock Market is Climbing the Wall of Worry, Part 4: Some Sectors Are Overbought Now; Market Correction is Increasingly Likely

The stock market has an excellent start in 2013 with almost all Fidelity diversified, sector and international funds showing a nice gain. We followed the buy opportunities in our blog throughout November and December of 2012. Indeed, investors were well rewarded for investing early in the bullish rally.

We must warn however, that some sectors are now becoming increasingly overbought and are vulnerable to a pullback. Additional risks include volatility that is often associated with earnings seasons and the proximity of the deadline for the budget ceiling negotiations in Washington.

We would not commit new money to buy mutual funds at this point, as the likelihood of a market correction has increased.

Fidelity Select Automotive Fund (FSAVX, last change: 0.85%)

The Fidelity Select Automotive Fund (FSAVX, last change: 0.85%) is the highest ranked Fidelity mutual fund in our momentum screen with a 21.23% three-month return.

 

Buy/sell signals for Fidelity funds are available at FidelitySignal.com.  

The Market Soars After the Fed’s Stimulus Announcement; Gold Stocks Benefit the Most

FSAGX

We have followed the breakout of gold stocks in our previous blog entries. The breakout continued today with the Fidelity Select Gold Fund (FSAGX, last change: 4.42%) making the largest gain of all of the Fidelity mutual funds we track after the Fed’s announcement of the stimulus package. In spite of the bullish action, we now are concerned about gold mining stocks becoming overbought and ripe for a pull back.

Technical analysis screens are provided by FidelitySignal.com